Can the owners corporation appoint a strata manager without seeing the management contract?

Whilst the Agency should have provided the contract within the meeting agenda for due consideration, it is concerning that the owners corporation resolved to enter into a contract without awareness of the relevant details, including pricing, terms, and conditions. While the Unit Titles (Management) Act 2011 (the Act) prescribes what must be included within a management contract, it is silent on the level of detail required within the motion authorising entry into that contract.

Section 50 (2) of the Act states that a management contract

1. must state;
   
   1. remuneration of the manager,
   2. the functions of the owners corporation that the manager is to exercise,
   
   
2. may include other conditions agreed between the owners corporation and the manager.

Given that the terms of the contract were not presented to the AGM, and the owners agreed to enter into a contract without having relevant information, it would be worthwhile engaging directly with the strata manager to seek clarification and, where appropriate, negotiate more favourable terms.

Should this approach prove unsuccessful, the owners corporation may wish to consider the following options:

1. Where the meeting was held as a reduced quorum - a petition may be lodged at ACAT seeking to overturn the motion. This must be submitted within 28 days of the meeting and requires the support of at least 50% of financial unit owners.
2. If the meeting was not subject to the reduced quorum provisions - an application may be made to ACAT requesting that the motion be overturned.

Both of the above pathways would require the unit owner/s or the Executive Committee to manage the ACAT process, including preparing the application and attending any required hearings.

Nina Cannell Signature Strata E: nina@signaturestrata.com.au P: 02 6185 0347